Tell me what are Inter-corporate Deposits (ICDs)? What are their main characteristic features?
Submitted by: AdministratorInter Corporate Deposits indicates unsecured short term funding raised by one company from another company. They are dependent on personal contacts. Following are their main characteristics:
1)They are for a very short period of time i.e 3 months or 6 months.
2)They are unsecured source for raising funds.
3)They are not regulated by any law.
4)It is a relationship based borrowing made by the company.
5)They involve high risk and high returns
6)Useful in solving temporary capital crisis.
Submitted by: Administrator
1)They are for a very short period of time i.e 3 months or 6 months.
2)They are unsecured source for raising funds.
3)They are not regulated by any law.
4)It is a relationship based borrowing made by the company.
5)They involve high risk and high returns
6)Useful in solving temporary capital crisis.
Submitted by: Administrator
Read Online Working Capital Management Job Interview Questions And Answers
Top Working Capital Management Questions
☺ | Explain what factors affect working capital requirement? |
☺ | What is Fixed working capital? |
☺ | What is Hypothecation? |
☺ | Do you know what are the sources used for financing temporary requirement of working capital? |
☺ | What is Variable working capital? |
Top Finance and Accounts Categories
☺ | MBA Finance Interview Questions. |
☺ | Bank Teller Interview Questions. |
☺ | Capital Market Interview Questions. |
☺ | Bank Reconciliation Interview Questions. |
☺ | Cashier Interview Questions. |